Cipla: Capturing the Global AIDS Drugs Market
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Case Details:
Case Code : MKTA009
Case Length : 14 Pages
Period : 2003-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Cipla
Industry : Pharmaceuticals
Countries : Global
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
Cipla's entry into South Africa
In 1997, South African president Nelson Mandela signed the Medicines and Related Substances Control Act to make less expensive, generic drugs available to the country's citizens through (1) parallel importing, i.e. importing pharmaceuticals from any source-including generics manufacturers-regardless of whether the patent holders approved and (2) compulsory licensing, which permitted the government to grant local companies permission to manufacture generics even when valid patents were held by foreign companies...
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Entering the Malaysian Market
On 29 October, 2003, Malaysia issued the world's first compulsory licence (CL) under a sharply-contested provision of the TRIPs (Trade-Related aspects of Intellectual Property rights) agreement of the WTO. The CL for four AIDS anti-retroviral formulations was awarded to Cipla, which offered anti-AIDS cocktails at the lowest prices in the world....
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Future Outlook
On December 1, 2003, World AIDS Day, the international medical charity Medicins sans Frontieres (MSF - MSF Doctors without Borders), announced that Cipla had slashed by half the cost of one of the most effective treatments used to fight AIDS.
Previously Cipla sold the preparation, Triomune, a combination of three generic ARV drugs, made into a single pill to be taken twice a day for about 280 dollars per person per year. The equivalent patented drugs - only available in three separate pills - cost about 700 dollars per patient per year... |
Exhibits
Exhibits I: Financial Results
Exhibits II: Sales of Each Class of Finished Goods
Exhibits III: Segment Information
Exhibits IV: Earnings in Foreign Exchange
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